‘The rapid deterioration in the UK’s economic momentum has largely gone unnoticed by an FX market preoccupied with political distractions.’ – GJanes Rossiter (Based on Pound Sterling Live)
Pair’s Outlook
Having outperformed the US Dollar, the British Pound approached the 1.30 major level on Friday, but with supply around this area remaining relatively strong. Consequently, another bullish development is not expected to occur, as the Cable is likely to keep weakening until the 1.28 major level is reached—that is where demand is sufficient to trigger a solid rebound. However, technical indicators in the daily timeframe are unable to confirm the pair is to edge lower today, thus, the immediate support, namely the weekly pivot point, at 1.2934 should limit any possible losses today.
Traders’ Sentiment
Traders retain a neutral sentiment, as 51% of all open positions are currently short and the remaining 49% are long. At the same time, there are only 54% of orders to acquire the Sterling (previously 57%).
